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Highlights

  • Q2 revenue rose 35% year-over-year to USD4.54 million, while six-month sales fell.
  • Q2 net loss narrowed to USD2.21 million from USD3.56 million a year earlier.
  • Operating expenses rose 67% to USD1.62 million; operating cash use improved to USD0.73 million.

Sky Quarry, a sustainable resource recovery company listed on NASDAQ (SKYQ), reported mixed financial results for Q2 2025. Quarterly revenue increased to USD4.54 million, a 35% increase versus Q2 2024, but the six-month topline declined 24% year-over-year to USD10.87 million. The company reduced its Q2 net loss to USD2.21 million from USD3.56 million in the same period last year, reflecting narrower quarterly losses even as certain cost lines expanded.

Gross profit for Q2 remained negative at -USD117,529, although this represented an improvement versus the prior-year quarter. For the first six months, gross profit swung to a -USD843,060 loss from a USD83,860 profit in the prior-year period, highlighting continued volatility in margins. Operating expenses climbed 67% year-over-year to USD1.62 million, driven by higher administrative and project-related costs tied to expansion and new initiatives. On a positive liquidity note, net cash used in operations improved materially, falling to USD0.73 million from USD2.60 million a year earlier.

On the strategic front, Sky Quarry disclosed plans to expand its Foreland Refinery to a full capacity of 800,000 barrels per year, signaling an intention to scale operations. The company has also filed a recycling permit application for a proposed integrated energy facility in Utah and launched a digital asset initiative focused on energy commodity tokenization. Management frames these initiatives as part of a broader effort to diversify revenue streams and monetise recovered resources through novel channels.

Despite quarter-over-quarter improvements in certain metrics, several risks remain. The company’s six-month revenue decline and persistent gross losses indicate that scaling and margin recovery are not yet assured. Rising operating expenses could pressure operating leverage if revenue momentum stalls. The planned Foreland Refinery expansion and Utah facility require regulatory approvals, capital expenditure, and operational execution — any delays or cost overruns would affect financial outcomes. The digital asset/tokenization initiative introduces additional execution and regulatory complexity given evolving rules in crypto and commodity markets.